Fair Value Gaps Part 3

Fair Value Gaps Part 3Lesson 4 of 85 min read

A break inside a break

A lower timeframe can break structure in the opposite direction to the chart above it, and that is not a change of trend.

Once you use two timeframes at the same time, they will disagree. This lesson is what to do when they do.

Two charts, two answers

Gold on the 1 hour is falling. Lower highs, lower lows, and a candle has already closed below 2,420.

Open the 5 minute and price is climbing. A 5 minute candle closes above its most recent swing high. On that chart alone, structure has broken upward.

Figure 1 · Two panels of gold: the 1 hour falling from 2,431 down through the 2,420 level, beside the 5 minute where price rises and one candle closes above its last swing high

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